Advancing openness and win-win cooperation
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Advancing openness and win-win cooperation
promoting sustainable growth in the value chain
Challenges and opportunities
UN 2030 Agenda calls for global cooperation and joint efforts. Economic globalisation
provides strong power for global economic growth and promotes commodity and capital
flows as well as S&T and cultural progress. However, due to the impact of the global
economic downturn and increasing trade protectionism, the demand for more openness,
win-win cooperation and mutual development is increasing for all countries.
China has implemented Going Global strategy and proposed the Belt and Road Initiative
to respond to these calls, aiming to build an open global economy that promotes the
liberalisation of trade and investment and facilitates further openness, communication,
integration and development.
Strengthen the means of implementation
and revitalize the global partnership for
sustainable development
32
Advancing openness and win-win cooperation
Sinopec 2016 Communication on Progress for Sustainable Development
33
Our actions
Assuming our responsibilities with partners in value chain
Sinopec Corp. provides services that impact people's livelihoods. We proactively implement the open cooperation
strategy, stick to the integration with local economy for win-win cooperation, steadily promote diversified ownership
reform, and strengthen cooperation with our partners including contractors and suppliers in the value chain, aiming
to jointly propel the sustainable development.
Sinopec Corp. embraces responsibility culture and promotes quality management and HSE management in
its value chain. We require a 100% qualification rate for project contractors, sub-contractors and carriers of
hazardous chemicals and conduct credit-based assessments for all contractors and suppliers to assess their safety
management. We assess suppliers to ensure they are in compliance with ISO 14000 and ISO 18000 standards, and
check whether their safety production contingency management system are qualified. We also evaluate their social
responsibility performance and the degree to which they handle emissions and waste disposals.We have built a
safety assessment model that covers logistics systems for hazardous chemicals and established KPIs to supervise
all carriers' safety mechanism and promote safe operations.
Building an open, just, transparent and honest value chain
Sinopec Corp. advocates the pursuit of shared values with its contractors, suppliers, purchasers and operators.
By promoting the use of our construction project e-trading system, we can monitor our business operations,
management, trading, assessment and appraisals via an online supervision system. We also implement Business
Ethics Agreement which shall be signed at the same time with the business contract.
Our self-discipline
(excerpt from Business Ethics
Agreement)
Our position
(excerpt from Letter to Suppliers
by Sinopec Corp.)
Our initiatives
(excerpt from White Paper of EPEC
E-commerce Platform Operation)
Case study
In October 2016, Sinopec Corp. disclosed information on its oil and gas pipeline facilities and opened its available
facilities with remaining capacities to third-parties. Our admittance standard outlines the necessary conditions that
must be met in safety, environmental protection, and employee care etc. The main requirements are as follows:
●
Do not claim or accept
discounted fee, agency fee,
commissions, cashes, securities,
payment vouchers, and other
valuables offered by Party B
Do not claim any expenses from
Party B that should be paid by
Party A or its individuals
Do not seek unjustified interests
for spouses and/or children of
Party A from Party B
Stick to openness, fairness,
justness and integrity
Promote and will improve the
construction of a market credit
system, and cooperate with
suppliers to create a healthy
business ecosystem; forbid
commercial bribery and
dishonesty
Firmly fulfil social responsibilities
Uphold the philosophy of
"quality first", "customers first"
and "credit first"
Comply with the company’s
integrity incentives and
dishonesty punishment
mechanism, and create an
e-commerce operating
environment based on honesty,
self-discipline, trustworthiness
and mutual trust
Enhancing cooperation in the industrial chain
In 2016, Sinopec Corp. promoted the integration of upstream and downstream industrial chains to achieve mutual
development through win-win cooperation. We cooperated with 14 provinces and cities to boost the development of
our natural gas business, and focused on the market-oriented reform. We introduced social capital to the natural gas
pipeline project from Sichuan to East China. Reforms of marketing company go smoothly. we are pursuing strategic
cooperation with the postal industry and shipbuilding industry. We are optimising our refinery and petrochemical
operations, building production bases, developing medium and high-end products, expecting to cooperate with our
stakeholders.
●
Respect and agree with HSE concepts of Sinopec Corp, build and improve its HSE management system, and
achieve good safety performance.
Be responsible for employees and put people first; provide premium products and services to customers; be
responsible for environment and attach importance to environmental protection.
Advancing openness and win-win cooperation
35
Case study
The Sinopec EPEC e-commerce platform
To meet the needs of companies in supply chain, Sinopec Corp. built the
EPEC e-commerce platform to connect the industrial chain and supply chain
via the Internet and contribute to national supply-side structural reform.
The EPEC platform utilises procurement advantages accumulated over 12
years to provide tailored services to customers. From quality supervisions
to trade dispute settlement, the platform provides one-stop service for
customers. The EPEC platform cooperates with financial institutions to
help upstream and downstream enterprises gain access to low-cost and
convenient financing channels, creating shared value and growth.
Promoting growth in the value chain
Sharing resources and promoting growth in the
industrial chain
Sinopec Corp. shares information and access to more than 30,000
suppliers with companies in the industrial chain and has built its EPEC
e-commerce platform that encourages social enterprises to use online
procurement. We present fair and just business opportunities for suppliers
through specific standards and fair procedures.
Promoting the identiication and prevention of
risks in supply chain
Tender and bidding training
programs for construction projects
5,278
person times
Supplier training
4,000
person times
Sinopec Corp. keeps track of the supply quality and progress. When major
problems are detected, we issue a letter of notification to suppliers and
take steps to help them control risks. We have set up goods supply risk
warning system to help customers raise awareness on the importance of
risk prevention and control. The ability for risk identification and prevention
in the value chain has been improved.
Carrying out training sessions in the value chain
Sinopec Corp. holds training sessions for contractors and suppliers to
facilitate communication on related laws and regulations, tenders and
bidding management and corporate business. Through enhanced two-way
communications, we promote the identification of values and help build
capacity for economic, environmental and social sustainable development.
In 2016, a total of 5,278 person times and over 4,000 person times were
recorded in our tender and bidding training programs for construction
projects and supplier trainings respectively.
By the end of 2016, 32,000 suppliers and 2,821 purchasers (84% are
external purchasers) were registered on the EPEC platform. More than
726,000 kinds of goods were available for online sale and 107,000
customers were registered. The total transaction value was about RMB 50
billion with RMB 2.64 billion of purchase amount from external enterprises.
"As a response to the 'Internet Plus' strategy, Sinopec Corp. leverages
multiple leading internet technologies to build the EPEC platform. EPEC
will build a bridge between resource management, tendering and bidding
and quality control, and create an open win-win market environment. As a
result, the long-term success of Sinopec EPEC can be guaranteed while
collaborative cooperation and mutual benefits can be promoted between
enterprises in the supply chain."
Stephen Hinson
China Operations Leader of GE Oil & Gas, EPEC supplier
Total registered suppliers
32,000
Kinds of goods for online sale
726,000
Total transaction value (RMB)
50
billion